Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/27026
Authors: 
Krüger, Jens
Year of Publication: 
2009
Series/Report no.: 
Kiel advanced studies working papers 449
Abstract: 
The literature on firm heterogeneity in international trade posits that only the most productive firms become exporters (Melitz 2003). However, empirical findings suggest that also firms that are not highly productive export. This paper investigates empirically how firms organize their export trade. If selling directly, sunk costs of foreign market entry are arguably very high, so only productive firms can achieve this (Schroeder et al. 2003). Low productivity firms, by contrast, may prefer to export through trading companies, which involves lower sunk costs. Using a firm level panel data set of Ghanaian firms we investigate the relationship between firm productivity and the use of export intermediaries. Our estimation results take simultaneity problems into account and reveal that indeed low productivity firms tend to export through intermediaries.
Subjects: 
Export intermediation
firm productivity
JEL: 
D21
F14
L22
Document Type: 
Working Paper

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